Bitcoin crossed the price level of $52,000 on Monday for the first time in 4 months after a substantial jump in demand from retail and institutional investors. BTC’s retail demand has been on the rise since the start of August 2021, but the institutional demand struggled during the first three weeks of last month.
However, the latest digital asset weekly fund flows report published by CoinShares, highlighted a sharp increase in institutional inflows of Bitcoin-related investment products. The cryptocurrency attracted approximately $59 million worth of institutional inflows last week.
Overall, crypto investment products saw inflows worth $98 million in the last week. This is apart from Bitcoin, Ethereum (ETH), Solana (SOL), Cardano (ADA), Polkadot (DOT) and XRP, which also attracted significant inflows during the mentioned period.
“Bitcoin saw inflows totaling US$59m, marking a potential turnaround in sentiment amongst investors. This is the first inflows following an 8-week spell of outflows, the longest endured by any digital asset investment product. Solana remains the favorite with weekly inflows totaling US$13.2m last week, doubling its total inflows year-to-date. While AUM has grown from US$15m the previous week to US$44m last week,” CoinShares mentioned in the report.
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In its previous digital asset weekly fund flows report, CoinShares highlighted record inflows in Cardano investment products. ADA attracted over $10 million worth of inflows in the last week of August 2021.
Bitcoin vs Altcoins
The latest data from CoinShares shows that the institutional interest in the cryptocurrency market is more diversified. Altcoins now account for a record 35% of the total digital asset investment products. Apart from Bitcoin, institutional investors have started diversifying their portfolios through investment in Ethereum, Solana, Cardano and XRP.
“Ethereum saw the third week of inflows totaling US$14.4m, while market share is at a record 28%, highlighting that while some investors have protocol concerns, its dominance is continuing to rise. Other altcoins, such as Cardano, Polkadot and XRP all saw notable inflows of US$6.5m, US$2.7m and US$1.2m, respectively,” CoinShares added.